Snapdeal cut costs, plans to layoff 30% staff in 2 months

New Delhi: Ecommerce company is likely to undertake massive retrenchment exercise and bring down its workforce by 30 percent in the next two months.

The Economic Times reported on Saturday that the online marketplace plans to drastically cut costs as the Indian ecommerce industry battles slowing growth and a paucity of investors willing to provide fresh rounds of funding. 

As per the report, around 1,000 employees directly employed by the company are likely to be laid-off, while thousands of contract workers in the company’s logistics division are also expected to be affected, said the people cited above. “5,000-odd contract staff employed by the company’s logistics subsidiary Vulcan Express will be pared down as well as about 3,000 people on the rolls of the logistics company,” said the report quoting a company executive and two consultants working with the company.

In February 2016, Snapdeal had put over 200 employees on a Performance Improvement Program and eventually let go of the additional staff. The layoffs are primarily directed at mid-level employees and new hires about to complete a year, the report said quoting a source.